Germany’s Siemens Energy has signed a memorandum of understanding (MoU) with the State of Berlin to work together over planning a future headquarters for the newly spun-off energy technology giant.
The company’s €16bn ($18.9bn) initial public offering at the Frankfurt stock exchange last month was one of Germany’s biggest ever, and the former subsidiary of Munich-based industrial conglomerate Siemens AG in September also had said it will locate its own corporate headquarters in Berlin.
Though it is not entirely clear where in the city the new headquarters will be located, Siemens Energy and Berlin are examining the feasibility and urban development possibilities of the company’s operational gas turbine plant in the district of Moabit.
“With the establishment of our corporate center in Berlin, Siemens Energy will return to its historical roots,” Siemens Energy chief executive Christian Bruch said.
“For us, this is a clear commitment to Berlin as an industrial and innovation location. We are pleased that the Berlin Senate has promised us its wide-ranging support in this process and in the possible development of the location.”
Werner von Siemens and Johann Georg Halske in 1847 founded Siemens & Halske in Berlin, which at first marketed their invention, the telegraph. The company quickly grew into an electric technology conglomerate, and after World War II moved its headquarters to Munich and later changed its name to Siemens AG.
Glad that at least part of the former industrial conglomerate will have its headquarters in Berlin again, the structurally weak city state agreed to support Siemens Energy in transforming industrial production with the aim of preserving and expanding future-oriented jobs.
As part of that effort, the state intends to improve accessibility to the site by accelerating the extension of a tram line in Berlin's public transport system.
“We are very pleased that the Siemens Energy Corporate Center will be located here,” Berlin Mayor Michael Müller said.
“Berlin is not only a strong development and production site for Siemens Energy, but also Germany's leading science and research location with ideal conditions for working together on the future of sustainable energy systems and thus driving forward the energy transition.”
Bruch and chief financial officer Maria Ferraro will move into their new offices in Berlin at the beginning of 2021. Despite developing a concept for the expansion of the new headquarters, the company will continue with a decentralised approach to its manufacturing locations.
Siemens AG remains the largest shareholder in spun-off Siemens Energy with a 35.1% stake, while the Siemens Pension-Trust owns another 9.9%. Siemens Energy, meanwhile, holds 67% in German-Spanish wind turbine manufacturer Siemens Gamesa Renewable Energy (SGRE), which has its headquarters in Spain.